Bengal investors in a fix as Covid pushes tourism to a brink in Sikkim

Lockdown has pushed hotel business in tourism hotspot Sikkim to the brink where investors from Bengal and other states are the first tire victims. Equal sufferer is over 70% of Sikkim's population dependent on hospitality industry that generates around Rs 1.5 k croer business there in a year.

Sikkim Govt has stopped entry of anyone from outside immediately after onset of the pandemic.

SILIGURU: Lockdown has pushed hotel business in tourism hotspot Sikkim to the brink where investors from Bengal and other states are the first tire victims. Equal sufferer is over 70% of Sikkim's population dependent on hospitality industry that generates around Rs 1.5 k croer business there in a year.

Nestled in natures lap, Sikkim hosts around 15 lakh domestic and 1.5 lakh foreign tourists annually in its near 2000 hotels and lodges with total around 35,000 rooms. This brings in a business volume of around 650 crore from lodging only. Including food, transportation and all other ancillaries the total hospitality business volume of the state comes around 1.5 k crore.

"Over 80% of these hotels are run on lease. The lease amount for lease holder is calculated depending upon capacity, quality or location of the property. The hefty lease amount ranging Rs 1.5 lakh to 2. 5 lakh per room per year needs to be paid in advance or in instalments," said Avijit Sengupta, Director of a Hotel company that runs many properties in Sikkim on lease.

"As the general trend goes, Sikkim hotels get around 90 to 100 days over 90% occupancy. April May June, the peak season, contributes 60 days in it. Eventually, lease holders finalise formalities by paying the amount before onset of summer," Samrat Sanyal, General Secretary of Himalayan Hospitality and Tourism Development Network(HHTDN).

Sikkim Govt has stopped entry of anyone from outside immediately after onset of the pandemic. By the time it is over, it will be almost rainy season, the weakest season for hills. The state could not even start summer business this time," said Raj Basu, tourism advisor to Govt. of Sikkim.

"Leaseholders are mostly from Bengal and few other states. Following zero return now, it has become too difficult to meet up our liabilities. On the other side, owners receiving lease payment in installment are bound to miss next installments and face trouble," said Sengupta.

"Beside the property owners, over 65% of the state populace is indirectly attached to hospitality industry, Naturally the state cannot afford to remain silent. We have already started working to action plan and its modalities," said Basu.